Special Correspondent

NEW DELHI: The Confederation of Indian Industry (CII) on Wednesday called upon the government to correct its fiscal deficit while aiming to accelerate the recovery process of the economy in its budget proposals for 2010-11.

Memorandum

In its pre-budget memorandum submitted to the Finance Ministry, the CII urged the government to adopt a two-pronged strategy to bring down fiscal deficit to 5 per cent from 6.8 per cent. It suggested that it set up fast trial court to at least clear 25 per cent of the disputes and litigations that had locked up at least Rs. 2 lakh crore.

Disinvestment

Apart from unlocking something over Rs. 50,000 crore through this measure, the memorandum said that the government could easily raise over Rs. 40,000 crore through disinvestment.

Additional revenues from higher taxation collection and telecom auction could easily result in a saving of 0.8 per cent in the fiscal deficit. The CII urged the government to continue with its 10 per cent rate of peak customs duty saying that any reduction would prove counter-productive.

It also favoured continuation of the general rate of excise duties at 8 per cent.

It also demanded that depreciation rates on plant and machinery be increased to 25 per cent and the scope of investment-linked tax incentives, which had been offered to select sectors for the current financial year, extended.